Skip to main content

Pre - Market Report (31st March 2020)

  1. U.S Markets closed 3% higher Yesterday. Asian Markets are also Mostly in Green.
  2. Trump has cautioned U.S Citizens that if the lockdown rules are not being followed Strictly then in coming 2 weeks the deaths in U.S could surge to more than a lakh.
  3. Lockdown has been extended to 30th April in some parts of U.S .
  4. Indian Institute of Medical Research Yesterday in their Press Conference mentioned that they have not obtained any Proofs of Community Transmission yet ( Stage 3) .
  5. It would be a Tremendous job if we Eradicate the spread of Corona Virus at Stage 2 itself.
  6. Indian Government also Clarified Yesterday that they are not planning to Extend the lockdown beyond 21 day period.
  7. There is not a lot of Incremental Negative news related to Corona Virus all over the World except in U.S
  8. Cases in U.S have surged to 1.4 lakh.
  9. Observing Yesterdays Market I can say that we are in the last round of selling now.
  10. In First round of selling all the low Quality stocks fall by 60-70% but Bluechip Stocks fall by 8-10% this was Witnessed in the Initial Week of March.
  11. In the Second round of selling Everything falls & in the last round of selling Bluechip Stocks fall by 30-40%.
  12. NBFC Stocks have taken a big hit Yesterday. Stocks like Bajaj Finance & HDFC ltd were down more than 10% each .
  13. SGX Nifty is up by 2% in the Pre - Open .
  14. India VIX has been cooling off from it's record high levels of 82-85 range and now it's near 71-72.
  15. This shows that Panic has been reducing in our Markets from last week.
  16. As Tomorrow is the Weekly Expiry & Premiums are quite high on both sides ( CE & PE) . Option Buyers should exercise a lot of Caution while buying Weekly Options.
  17. Yesterday, even when Markets fell Put Options were not rising proportionately to the Market fall. This was because there were very low Volumes being Traded in the Markets & sentiment is not excessively bearish now as it was before.
  18. Futures continue to trade at a Discount on both Nifty & Bank Nifty.
  19. Currently I am not expecting large moves in the Market as we are in a Consolidating phase.
  20. Yesterday the Mid cap & small cap index were down 5% each. So Broader markets were much weaker when compared to Index.
  21. Unless there is any more Incremental Negative news I do not expect Nifty to breach 7500.
  22. As Mentioned Yesterday Bank Nifty will continue to Underperform & all types of rallies should be sold into. HDFC Bank leading the Underperformance and was down 8% Yesterday.
  23. Nifty is likely to remain Rangebound today in the range of 8000-8700 & exploring trading Opportunities at the Boundaries is Advisable.
  24. Sold 7400 PE & 9500 CE Yesterday on Nifty. ( Weekly Expiry).
  25. Sold 16000 PE & 23000 CE on Bank Nifty Yesterday.(Weekly Expiry).
  26. Explore Shorting Opportunities in Quality Bluechip which have not Participated in the Current Market fall. Returns are more Favourable on this front.

Comments

Popular posts from this blog

Pre- Market Analysis (5th May 2022)

U.S Markets closed higher yesterday. Asian markets are higher. SGX nifty is up 150 points. Yesterday was a very tricky and unexpected session. As soon as Market opened there was a continuous selling. Market was falling left , right and center without taking any support. I was wondering why is the Market going against the global cues Then we got the news about RBI Governer press conference. So some informed people already knew about this rate hike. Hence there was a sudden selling in the markets. RBI hiked repo rate by 40 basis points and Cash Reverse ratio by 50 basis points. Repo rate is the rate at which banks borrow money from RBI. When the rate is increased banks borrow money at higher cost and in turn loans also get costlier. This slows down the growth and liquidity in the Market temporarily. Cash reserve ratio is the interest free deposit money which banks have to keep with RBI. RBI uses that money without having to pay any interest on it. Increasing CRR means RBI is

Pre - Market Analysis (18th April 2022)

U.S Markets closed lower on Thursday. Asian markets are all lower. Dow futures are lower right now. SGX Nifty is down 250 points. Indicating a huge gap down at the open. Reason is the Global markets underperformance plus not so good corporate results. Infosys has disappointed and missed earnings by street estimates. Infy ADR was down 9% in last 2 trading sessions in U.S Hdfc bank also missed earnings but asset quality has been improved. Today we can expect huge gap down openimg in infy. Hdfc bank has limited downside left because it has already fallen a lot after the merger news. 17150-17200 is a strong support on Nifty and this is where 200 DMA kicks in. If you are a Bull this is a large support area. Markets are oversold and this offers a good opportunity to go long. Nect support comes in at 17k. If global markets keep declining then no support would work. Bank Nifty 200 DMA kicks in at 36800. Bank Nifty looks much stronger than Nifty currently as IT isn't included in

Pre - Market Analysis (11th April 2022)

U.S Markets closed mixed on Friday. Dow Jones closed slightly higher. S&P 500 was flat and Nasdaq is very weak. Right now , Dow futures are lower. SGX Nifty is down 100 points. So we are in for a gap down opening today. Friday was a quite interesting day. As expected , RBI policy was a status quo. Nifty broke Thursday low of 17640 and traded below for quite some time. And then for a short squeeze. All the shorts were trapped and we had a big rally. Most importantly , India VIX was down 7% on Friday. I expect markets to consolidate between 17600 to 18100 for a while. I do not see a reason to be excessively bearish now. Markets went from 17700 to 18100 because of hdfc twins. And then crashed to 17600 because of these both stocks. These both stocks have given up all of their gains and are back to Pre merger levels. There is very limited downside now for these stocks and expecting these stocks to bottom out soon 17500 to 17600 is a strong buy zone on Nifty. Also earnings se